Microsoft, The sleeping giant goes on the offensive

When Microsoft went public in 1986, there was no 3-D videogaming, no enterprise software, and no Google.

Two decades and $285 billion in market cap later, CEO Steve Ballmer is facing a stagnant stock price and more competition than ever. His strategy? Take the offensive.

Microsoft is about to roll out new versions of Windows and Office. On the day he unveiled a bold $500 million marketing campaign to challenge IBM in the corporate tech market, the affable and energetic Ballmer, 50, bounded into FORTUNE's offices to discuss what Sony's troubles mean for the Xbox 360 game system, the future of advertising and why his kids shun iPods. The Sleeping Giant Goes on the Offensive - April 3, 2006